lnLroducLlon

W 1he Lerm goal congruence ls applled Lo an

organlzaLlon Lo ensure LhaL all lLs operaLlons and
acLlvlLles are seL up ln supporL of Lhe
organlzaLlons goals 1hls means LhaL Lhe
organlzaLlon wlll revlew all lLs operaLlons and
acLlvlLles Lo lnsure LhaL none of Lhem (Lhose
operaLlons and acLlvlLles) work ln a way LhaL
llmlLs or lnhlblLs Lhe organlzaLlons ablllLy Lo
reach lLs goals whaLever Lhey may be
eflnlLlon
W vl[ay ovlndra[an deflnes Lhe oal
congruence as ln a goal congruenL process
Lhe acLlons people are led Lo Lake ln
accordance wlLh Lhelr percelved selflnLeresL
are also ln Lhe besL lnLeresL of Lhe
organlzaLlon"
ample
W roducLlon Manager may geL a good applause for
reduclng cycle Llme 8uL aL whaL cosL? 8ulldlng up Lhe
hlgh lnvenLory le hlgher lnvesLmenL ln currenL asseLs
Whlle dolng so he [usL overlooked Lhe flnanclal lnLeresL
of Lhe company
W - fLer compleLlng Lhe glven acLlvlLy ln more efflclenL
manner Lhe concerned manager scores Lhe polnL/s on
hls score card
W - WheLher hls acLlons are leadlng Lo scorlng of polnLs
on Lhe organlzaLlon's score card Loo? lf lL ls so Lhen
only one can say Lhe organlzaLlon ls marchlng Lowards
a common goal
C-D-C
W rg goals may be lnconslsLenL wlLh lndlvldual
goals
W MCS Lrles Lo ensure goal congruence
W ln goal congruenL process Lhe acLlons people
are led Lo Lake ln Lhelr percelved self lnLeresL
are also ln Lhe besL lnLeresLs of Lhe
organlzaLlon
C-D-C
W very lndlvldual has ersonal oals
W Many a Llmes confllcL beLween ersonal org oals
W Pence Lhls necesslLaLes a developmenL of a conLrol
sysLem LhaL lnLegraLes Lhe personal goals wlLh org
goals so LhaL goal congruence ls achleved
W oal congruence means Lhe acLlon people Lake ln
accordance wlLh Lhelr percelved selflnLeresL and
also ln Lhe besL lnLeresL of Lhe organlzaLlon
W MCS should be deslgned and operaLed wlLh Lhe
prlnclple of goal congruence ln mlnd
C-D-C
loJlvlJools wotk lo Jlffeteot
bletotcbles ooJ booJles
Jlffeteot tespooslbllltles moy
bove Jlffeteot qools
8ot tbey most come toqetbet os
fot os compooys Cool ls
coocetoeJ lts colleJ Cool
cooqtoeoce
C-D-C OMS
W ample 1 1he P manager has devlsed a P
Lralnlng program Lo enhance Lhe skllls of lLs
sales personnel wlLh an ob[ecLlve Lo enhance
Lhelr producLlvlLy 8uL lf company ls ln sLraLeglc
need of aLLalnlng a cerLaln sales volume ln a
glven quarLer lL can noL do so on accounL of
non avallablllLy of personnel
C-D-C OMS
W ample 2 1he markeLlng deparLmenL
has planned an lmpresslve adverLlslng
campalgn whlch promlses good reLurns
8uL say due Lo cash crunch Company's
currenL flnanclal poslLlon may noL leL Lo
lose Lhe sLrlngs
C-D-C OMS
W ample 3 roducLlon Manager may geL a
good applause for reduclng cycle Llme 8uL aL
whaL cosL? 8ulldlng up Lhe hlgh lnvenLory le
hlgher lnvesLmenL ln currenL asseLs Whlle
dolng so he [usL overlooked Lhe flnanclal
lnLeresL of Lhe company
acLors
lnfluenclng oals
lnformal facLors
ormal facLors
C1S l-D-Cl-
C-D-C
lnformal facLors LhaL lnfluence oal
Congruence
Lernal
acLors
lnLernal
acLors
l-M C1S
1 Lernal facLors
W 1he facLors lylng ouLslde Lhe purvlew of an
organlzaLlon do lnfluence Lhe organlzaLlon
behavlour
W lL may comprlse facLors such as seL of
aLLlLudes of Lhe socleLywork eLhlcs of socleLy
W lL also lnfluence Lhe employee loyalLyLhelr
prlde ln dolng Lhe glven org Lask
l-M C1S
2 lnLernal facLors
W CulLure
W ManagemenL sLyle
W 1he lnformal org
W ercepLlon and communlcaLlon
1he Informa| System Act|ons refer to
mergenL oles 8ecomlng Lhe eperL
ssumlng new responslblllLles
SLyle and CulLure 1ralnlng ln values bellefs or soclal dynamlc
cLlve plannlng Searchlng and gaLherlng lnformaLlon
ConLrol process lnvesLlgaLlng and Lransformlng eplorlng
posslblllLles and poLenLlal soluLlons
lscusslng developmenLs regardlng
problems pro[ecLs and goals
eward SysLem Showlng appreclaLlon
lvlng Lhanks
ecognlzlng accompllshmenL
CoordlnaLlng mechanlsms Members coordlnaLlng wlLh oLher unlL
members
ormal facLors
W 1he goal congruence ls lnfluence by Lhe
formal sysLems 1hese sysLem are of Lwo
Lypes 1hey are
1 1he managemenL conLrol sysLem lLself
2 ules
DS
W DS all Lypes of formal lnsLrucLlons and
conLrols lncludlng [ob cards operaLlng
procedures manuals eLhlcal guldellnes
W ules generally elsL unLll modlfled
W Some rules are guldes dlscreLlonary
W Some poslLlve requlremenLs marksmanshlp
W ules prohlblLory
Some speclflc Lypes of rules
W hyslcal conLrols guards locks CC1vs
W Manuals wrlLLen guldellnes blgger Lhe
company more deLalled DpdaLed
W SysLemlc safeguards passwords cross
checks slgnaLures separaLlon of duLles
W 1ask conLrol sysLems
-lS1l- S1DC1D
W 1he organlzaLlonal sLrucLure can be
grouped lnLo Lhree general caLegorles
1 uncLlonal organlzaLlon
2 8uslness unlL organlzaLlon
3 MaLrl SLrucLure
uncLlonal organlzaLlon
C
Manager
of planL 2
Manager
eglon C
,AkkL1ING
,ANAGLk
Manager
eglon
Manager
of planL 1
,ANUI
,ANAGLk
Manager
of planL 3
Manager
eglon 8
S1AII
W Advantages
1 lL promoLes loglcal dlvlslon of work
2 1here ls delegaLlon of dayLoday operaLlonal
funcLlons
3 lL provldes Llme for Lhe Lop managemenL Lo
focus on sLraLeglc declslons
W |sadvantages
1 lfflculLy ln coordlnaLlon
2 Slow declslon maklng
3 ConfllcLs
8uslness unlL organlzaLlon
C
MarkeLlng
Manager
MarkeLlng
Manager
Manager 8uslness
DnlL C
lanL
Manager
lanL
Manager
Manager 8uslness
DnlL
Manager 8uslness
DnlL 8
lanL
Manager
S1AII
MarkeLlng
Manager
SLaff
SLaff SLaff
W Advantages
1 Common sLraLeglc lnLeresLs
2 lL provldes a Lralnlng ground ln general
managemenL
3 les accounLablllLy on Lhe head of S8D
W |sadvantages
1 1oo many dlfferenL S8Ds Lo handle ln large
organlzaLlon
2 lfflculLy ln asslgnlng responslblllLy and deflnlng
auLonomy for S8Ds heads
3 ddlLlon of anoLher layer of managemenL
beLween corporaLe lower level managemenL
M1lO -lZ1l-
C
IINANCL
,AkkL1ING
,ANAGLk
ro[ecL
Manager 8
ro[ecL
Manager
,ANUI
,ANAGLk
nk
ro[ecL
Manager C
S1AII
W Advantage
1 sslgnlng of lndlvldual speclallsL
2 lL fosLers creaLlvlLy
3 rovlde good eposure
W |sadvantages
1 Confuslon
2 CommunlcaLlon problem
D-1l-S C-1
W Designing and operating inIormation & Control Systems
W Preparing Financial Statements and Financial reports Ior
shareholders & other parties
W Preparing, Analyzing, and interpreting Iinancial reports
W Analyzing budget proposals Irom various segment oI the company
and consolidating them into an overall budget.
W Supervising internal auditing and accounting control to ensure
validity oI inIormation
W Establishing adequate saIeguards against theIt and Iraud
W Developing personnel in the controller Organization
W To advice management on Iinancial implication oI decisions under
consideration
8DSl-SS D-l1 C-1
W Dotted line Relationship
W Here the controller reports to BU Manager,
who is immediate boss, and ultimate authority
in hiring, training, transIer, compensation,
promotion, and Iiring.
8DSl-SS D-l1 C-1
W Solid line Relationship
W Here the controller reports to Corporate
Controller who is also boss oI the business unit
controller and having authority Ior hiring.
1-1lv C-1
1l-SPl
8uslness
DnlL
ConLroller
CorporaLe
ConLroller
8uslness
DnlL
Manager
8uslness
DnlL
ConLroller
CorporaLe
ConLroller
8uslness
DnlL
Manager
ConLroller's elaLlon Lo lne
rganlzaLlon
W Controller sometimes acts as line manager but their decisions
can be overruled by actual line managers.
W Sometimes they do take decisions. For E.g. deciding the
propriety oI expense listed on a travel voucher
W The Business Unit Controller
He has divided loyalty between corporate controller & Unit
Manager.
II he reports to Corporate Controller, he is treated as spy
rather than trusted aide by unit manager.
And iI he is reporting to unit manager, he may not give
objective reports on Business Unit.
;DS1l-S
W 1) plaln Lhe concepL of goal congruence and
dlscuss Lhe facLors whlch affecL Lhe congruence
lve eamples 14 marksMay2011
W 2) WhaL do you undersLand by goal congruence?
lve amples and eplaln problems of goal
congruence faced by mulLldlvlslonal companles aL
dlfferenL levels 14 marksMay2010
W 3) ShorL -oLe oal Congruence 7markscL
2009 May2009